Posted on: May 19, 2022, 05:20h.
Last updated on: May 19, 2022, 10:27h.
Bloomberry Resorts envisions the Philippines as a massive gambling destination. The company already owns or invests in several casinos and integrated resorts there, but wants to add another.
Bloomberry, the Enrique Razon-led empire, plans to build a third integrated resort (IR) on the main island of Luzon. The resort would be located at Paniman in Cavite, which is about 66 km (41 miles) southwest of Metro Manila.
Based on the average price per square meter, the company plans to invest PHP7.55 billion (US$144.3 million) on the land alone. Bloomberry owns the Solaire Resort and Casino in Manila, and Razon recently announced a significant investment in projects that PH Resort Group is building.
More Gaming in the Philippines
Solaire Entertainment Property Holdings Inc (SEPHI) is a new unit of Bloomberry. It envisions the Paniman property as an “integrated resort and entertainment complex with a world-class casino, hotel, golf course, commercial, residential and mixed-use development,” according to a Bloomberry filing with the Philippine Stock Exchange.
The filing added that Solaire Entertainment would purchase just under 2.80 million square meters (81.31 million square feet) of “titled & cleared” land to build the project. Its cost averages out to about PHP2,700 (US$51.54) per square meter.
Bloomberry added that it signed the land purchase agreement on Wednesday. It includes a group consisting of Boulevard Holdings Inc, Puerto Azul Land, Inc., Ternate Development Corp., and Monte Sol Development Corp.
However, the project’s development will have to wait. The company added that construction will begin after the Solaire North in Quezon City opens for business.
Solaire North is going to be Bloomberry’s second IR in the country. An update last month by Razon, chairman and CEO of the company, said that the property is on track to open sometime next year.
Bloomberry Starts to Rebound
Bloomberry reported last week that its first-quarter consolidated net revenue increased 9.1% sequentially. It earned PHP7.20 billion (US$137.4 million) in the quarter, up from PHP6.6 billion (US$125.92 million) a year ago.
In the past, the firm stated its ambition to have overseas operations. This is in addition to the casino investment in Jeju, South Korea. The group also discussed the possibility of a project in Incheon, South Korea, and it had also explored the possibility of bidding for an IR license in Japan.
The Philippines offers an attractive proposition for growth in gross gaming revenue (GGR). Morgan Stanley analysts recently revealed that the GGR could rise to 85% of its pre-pandemic levels by the fourth quarter of this year.
There is strong domestic demand for gaming. This is alongside the possibility of offering online play to players in the country via land-based casinos. Analysts also highlight the potential for increased inbound tourism because of the removal of COVID-19 restrictions.
Casino resorts in Metro Manila are now operating at their full capacity. The area moved to “Alert Level 1,” the lowest level of COVID-19 countermeasures, on March 1.